GLOSSARY

Behavioural finance definition

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What does Behavioural finance mean?

People make investment decisions, and markets move, not always according to strict logic, but according to the way people behave (eg in investment bubbles). A study of behavioural finance can offer understandings as to how markets move.

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MiFID II conduct of business and investor protection requirements

MiFID II conduct of business and investor protection requirements BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime. Background to MiFID II and UK Conduct of Business requirements Following the financial crisis of 2008, the European Commission (Commission) implemented a review of the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID) with the view to improving the functioning of financial markets and to strengthening investor protection, which led to the adoption of a legislative proposal for the revision of MiFID. As a result of the review, the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR) (together the MiFID II Framework) were adopted and entered into force on 2 July 2014. The majority of MiFID II provisions took effect from 3 January 2018. MiFID II made a number of changes to the requirements in MiFID concerning the way that firms should conduct their business. MiFID’s conduct of business requirements were predominantly implemented in

Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR)—timeline

Since 2007, the Markets in Financial Instruments Directive (MiFID) had increased competition and innovation, leading to better services and protection for investors in Europe. Even though MiFID I had only applicable for a relatively short number of years, the Commission proposed introducing MiFID II (Directive 2014/65/EU) and the Markets in Financial Instruments Regulation (MiFIR) (Regulation (EU) 600/2014) as a result of a more complex European market with increasingly diverse financial instruments and methods of trading. MiFID II and MiFIR, which were published in the Official Journal of the EU (OJ) on 12 June 2014 and came into force on 2 July 2014, repealed and recast MiFID I. Member states were to adopt measures transposing the MiFID II Directive into national law by 3 July 2017, and apply them by 3 January 2018. 2020 Date Source Document Description 10 March 2020 ESMA Consultation Paper: MiFID II/ MiFIR review report on the transparency regime for non-equity instruments and the trading obligation for derivatives (ESMA70-156-2189) The European Securities and Markets Authority (ESMA) launched a consultation paper reviewing the transparency regime for non-equity instruments

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Suitability guidelines: ESMA looks to revamp requirements to better serve clients

Financial Services analysis: The European Securities and Markets Authority (ESMA) recently published a consultation paper on certain aspects of suitability requirements in Directive 2014/65/2014 (MiFID II). Andrew Henderson, partner and author of the MiFID chapter in Gore-Browne on EU Company Law, and James Burnie, associate at Eversheds Sutherland LLP, explain the purpose of the consultation paper, the key proposed changes and their implications.

Lexis®PSL Financial Services weekly highlights—26 January 2017

Welcome to the weekly Financial Services highlights from the Lexis®PSL Financial Services team for the week ending 26 January 2017. This week’s edition of Financial Services highlights provides an aggregation of the news reported by the Lexis®PSL Financial Services team over the past week and includes (1) updates regarding the UK’s decision to leave the EU (2) updates from the Financial Conduct Authority, the Prudential Regulation Authority, and the Bank of England (3) updates from other regulatory bodies and law makers including the UK government, the Treasury Committee, the Supreme Court, the European Parliament, the European Commission, the European Payments Council, the European Banking Authority, the European Insurance and Occupational Pensions Authority, the European Central Bank, the Payment Systems Regulator, the Serious Fraud Office, the Complaints Commissioner, the International Valuation Standards Council, and the Financial Stability Board (4) updates from industry bodies including the City of London Law Society, the Association for Financial Markets in Europe, PricewaterhouseCoopers, the Confederation of British Industry, the International Regulatory Strategy Group, the Personal Finance Society, the Money Advice Service, the US Securities Industry and Financial Markets Association’s Asset Management Group, ICE Benchmark Administration, and the UK Shareholders’ Association (5) relevant updates from other practice areas and (6) dates for your diary from Lexis®PSL Financial Services.

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